Company Announcement

21 February 2024
Announcement No. 3

NKT A/S Annual Report 2023: 36% organic growth and record-high operational EBITDA

NKT CEO Claes Westerlind, on 2023 performance:

- 2023 was a successful year for NKT with organic revenue growth of 36% and the highest annual operational EBITDA in company history. Demand for high-voltage power cable systems was unprecedented during the year. This led to a record order intake bringing our high-voltage order backlog to EUR 10.8bn and the launch of an approximately EUR 1bn investment program. We enter 2024 with a robust financial position that forms the foundation for further improvement of financial performance.

Financial highlights

* Std. metal prices

2024 financial outlook
Revenue (in std. metal prices) is expected to be approx. EUR 2.21-2.36bn and the operational EBITDA is expected to be approx. EUR 285-335m.

The financial outlook is based on several assumptions including:

• Satisfactory execution and development of high-voltage investments and projects without major disruptions

• Stable market conditions in Applications

• Normalized offshore power cable repair activity

• Stable development of the global economy

• Stable supply chain with limited disruptions and access to the required labour, materials and services

• Stable development in foreign currency and metal prices

High growth in revenues and operational EBITDA driven by Solutions and Applications
In 2023, NKT achieved revenues (in std. metal prices) of EUR 1,927m, equalling organic revenue growth of 36% compared to 2022, which was driven by further growth in Solutions and Applications. Increased revenues and efficiency initiatives led to the highest annual operational EBITDA in company history. NKT’s net result from continuing operations for 2023 amounted to EUR 118.7m, an increase of EUR 63.6m from 2022. Furthermore, free cash flow increased, driven by a larger positive EBITDA contribution and improved working capital position. This more than offset a higher investment level.

In Solutions, NKT posted organic growth of 59%. This was driven by satisfactory execution of orders awarded in recent years covering several power cable solutions; as well as a previous capacity expansion investment program that contributed to financial performance. Higher revenues and a continued focus on profitability saw operational EBITDA increase to a new high of EUR 182m in 2023 from EUR 106m in 2022.